The Inside Lag Is the Time

question 62

Multiple Choice

The inside lag is the time:

• A) before automatic stabilizers respond to economic activity.
• B) after automatic stabilizers respond to economic activity.
• C) between a shock to the economy and the policy action responding to the shock.
• D) between a policy action and its influence on the economy.

---

Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to the increased interconnectedness of the world's economies, cultures, and populations.

Microsoft

An American multinational technology company known for its software products, including the Windows operating system and Office suite, as well as hardware and cloud services.

WTO

The World Trade Organization, an international body that oversees global trade rules among nations, aiming to ensure trade flows as smoothly, predictably, and freely as possible.

Tiananmen Square

The site of a 1989 pro-democracy protest in Beijing, China, which was forcibly suppressed by the government leading to significant loss of life and international condemnation.